Part 1 Perform a vertical analysis of Wal-Mart Stores, Inc.?s income statements and balance sheets as of January 31, 2013. In performing this analysis, consider any notable trends or changes that you observe that may provide useful information concerning its financial condition. Also use as many years? worth of statements as you feel necessary. You should write up your results in paragraph form. Part 2 Assess Wal-Mart, Stores Inc. concerning profitability, liquidity, solvency, management efficiency, investment return, and stock features as of January 31, 2013. For each area, you should calculate the ratios we discussed in class and provide an analysis of the ratios calculated. Below is historical stock price information. Fiscal Year Ended 1/31/2013 1/31/2012 1/31/2011 1/31/2010 Adjusted Closing Price $69.50 $59.50 $52.92 $49.29

WAL MART STORES INC 10-K Income Statement (Amounts in millions except per share data) Fiscal Year Ended January 31, Revenues: Net sales Membership and other income 2013 2012 2011 2010 $466,114 $443,854 $418,952 $405,132 3,048 3,096 2,897 2,953 469,162 446,950 421,849 408,085 352,488 88,873 335,127 85,265 314,946 81,361 304,106 79,977 27,801 26,558 25,542 24,002 Interest: Debt Capital leases Interest expense Interest income 1,977 274 2,251 (187) 2,034 288 2,322 (162) 1,928 277 2,205 (201) 1,787 278 2,065 (181) Interest, net 2,064 2,160 2,004 1,884 25,737 24,398 23,538 22,118 Provision for income taxes: Current Deferred 7,999 (18) 6,742 1,202 6,703 876 7,643 (487) Total provision for income taxes 7,981 7,944 7,579 7,156 Income from continuing operations Income (Loss) from discontinued operations, net of tax 17,756 0 16,454 (67) 15,959 1,034 14,962 (79) Consolidated net income 17,756 16,387 16,993 14,883 (757) (688) (604) (513) Costs and expenses: Cost of sales Operating, selling, general and administrative expenses Operating income Income from continuing operations before income taxes Consolidated net income attributable to noncontrolling interest Consolidated net income attributable to Walmart $16,999 $15,699 $16,389 $14,370 Net income per common share: Basic income per common share from continuing operations to Walmart Basic income (loss) per common share from discontinued operations $5.04 $0.00 $4.56 ($0.02) $4.20 $0.28 $3.74 ($0.02) Basic net income per common share attributable to Walmart $5.04 $4.54 $4.48 $3.72 Diluted income per common share from continuing operations to Walmart Diluted income (loss) per common share from discontinued operations $5.02 $0.00 $4.54 ($0.02) $4.18 $0.29 $3.73 ($0.02) Diluted net income per common share $5.02 $4.52 $4.47 $3.71 Weighted-average number of common shares: Basic Diluted Dividends declared per common share 3,374 3,389 $1.59 3,460 3,474 $1.46 3,656 3,670 $1.21 3,866 3,877 $1.09 WAL MART STORES INC 10-K Balance Sheet (Amounts in millions except per share data) January 31, ASSETS Current assets: Cash and cash equivalents Receivables Inventories Prepaid expenses and other Current assets of discontinued operations 2013 2012 2011 2010 $7,781 6,768 43,803 1,588 0 $6,550 5,937 40,714 1,685 89 $7,395 5,089 36,437 2,960 131 $7,907 4,144 33,160 2,980 140 Total current assets $59,940 $54,975 $52,012 $48,331 Property and equipment, at cost Less accumulated depreciation Property and equipment, net 165,825 (51,896) 113,929 155,002 (45,399) 109,603 148,584 (43,486) 105,098 137,848 (38,304) 99,544 Property under capital lease Less accumulated amortization Property under capital lease, net 5,899 (3,147) 2,752 5,936 (3,215) 2,721 5,905 (3,125) 2,780 5,669 (2,906) 2,763 Goodwill Other assets and deferred charges 20,497 5,987 20,651 5,456 16,763 4,129 16,126 3,942 $203,105 $193,406 $180,782 $170,706 LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities: Short-term borrowings Accounts payable Accrued liabilities Accrued income taxes Long-term debt due within one year Obligations under capital leases due within one year Current liabilities of discontinued operations $6,805 38,080 18,808 2,211 5,587 327 0 $4,047 36,608 18,154 1,164 1,975 326 26 $1,031 33,676 18,701 157 4,655 336 47 $523 30,451 18,734 1,365 4,050 346 92 Total current liabilities 71,818 62,300 58,603 55,561 Long-term debt Long-term obligations under capital leases Deferred income taxes and other Redeemable non-controlling interest Commitments and contingencies 38,394 3,023 7,613 519 0 44,070 3,009 7,862 404 0 40,692 3,150 6,682 408 0 33,231 3,170 5,508 307 0 Total assets Shareholders equity: Common stock ($0.10 par value; 11,000 shares authorized, 3,314, 3,418, 3,516, & 3,786, 332 shares issued & outstanding at each year end Capital in excess of par value 3,620 Retained earnings 72,978 Accumulated other comprehensive income (loss) (587) 342 352 378 3,692 68,691 (1,410) 3,577 63,967 646 3,803 66,638 (70) Total Walmart shareholders' equity 76,343 71,315 68,542 70,749 5,395 4,446 2,705 2,180 81,738 75,761 71,247 72,929 $203,105 $193,406 $180,782 $170,706 Noncontrolling interest Total equity Total liabilities and shareholders equity WAL MART STORES INC 10-K Statement of Cash Flows (Amounts in millions) Fiscal Year Ended January 31, Cash flows from operating activities: Consolidated net income (Income) Loss from discontinued operations, net of tax $17,756 $16,387 0 67 $16,993 $14,883 (1,034) 79 Income from continuing operations 17,756 16,454 15,959 14,962 8,501 (133) 527 8,130 1,050 398 7,641 651 1,087 7,157 (504) 318 Changes in certain assets and liabilities, net of effects of acquisitions: Increase in accounts receivable (Increase) Decrease in inventories (Decrease) Increase in accounts payable (Decrease) Increase in accrued liabilities and income taxes (614) (2,759) 1,061 1,252 (796) (3,727) 2,687 59 (733) (3,205) 2,676 (433) (297) 2,213 1,052 1,348 Net cash provided by operating activities 25,591 24,255 23,643 26,249 Adjustments to reconcile income from continuing operations to net cash provided by operating activities Depreciation and amortization Deferred income taxes Other operating activities 2013 2012 2011 2010 Cash flows from investing activities: Payments for property and equipment Proceeds from disposal of property and equipment Investments and business acquisitions, net of cash acquired Other investing activities (12,898) (13,510) 532 580 (316) (3,548) 71 (131) (12,699) (12,184) 489 1,002 (202) 0 219 (438) Net cash used in investing activities (12,611) (16,609) (12,193) (11,620) Cash flows from financing activities: Net change in short-term borrowings Proceeds from issuance of long-term debt Payment of long-term debt Dividends paid Purchase of Company stock Purchase of redeemable noncontrolling interest Other financing activities 2,754 211 (1,478) (5,361) (7,600) 0 (498) 3,019 5,050 (4,584) (5,048) (6,298) 0 (597) 503 11,396 (4,080) (4,437) (14,776) 0 (634) (11,972) (8,458) (12,028) (14,191) 223 (33) 66 194 Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of year 1,231 6,550 (845) 7,395 (512) 7,907 632 7,275 Cash and cash equivalents at end of year $7,781 $6,550 $7,395 $7,907 Supplemental disclosure of cash flow information Income tax paid Interest paid 7,304 2,262 5,889 2,346 6,984 2,163 7,389 2,141 Net cash used in financing activities Effect of exchange rates on cash (1,033) 5,546 (6,033) (4,217) (7,276) (436) (742)